rebillable mileage Question

[AMH]

If a company pays for my mileage - is this classed as taxable business income?
I wouldnt think it is, but cant find an answer.

My business currently gets 30p per mile
I use my own car so reclaim from my business the 40p/25p limits.

currently I submit a timesheet with my mileage & I get everything paid to me in a lump which goes down as sales on my accounts.
This is how the agency asked me to invoice them - despite my contract clearly saying the mileage rate.
So I am thinking they have mis-advised me.

[Jessica@WhiteFieldTax]

Yes, the mileage counts as taxable income, for CT and Vat.

You then, as you are doing, claim the mileage as an expense at HMRC rates. The mileage you claim may be greater than which is reimbursed to you if you do any non reimbursed journeys. Your expenses don't distinquish between client reimbursed mileage and non client reimbursed mileage.

Normal 24 month rule, etc, applies.

[AMH]

Thanks
I dont see the point in recording it as re-billable then, if i'm getting taxed on it if I record it or not.

[northernladuk]

Why do you not just pick up the phone and speak to the professional you are actually paying for this advice????

[TheFaQQer]

If a company pays for my mileage - is this classed as taxable business income?
I wouldnt think it is, but cant find an answer.

My business currently gets 30p per mile
I use my own car so reclaim from my business the 40p/25p limits.

currently I submit a timesheet with my mileage & I get everything paid to me in a lump which goes down as sales on my accounts.
This is how the agency asked me to invoice them - despite my contract clearly saying the mileage rate.
So I am thinking they have mis-advised me.

Expenses should just be another line on the invoice. You add the amount, add VAT, they pay it.

What your company pays you is a different question.

[TheCyclingProgrammer]

Thanks
I dont see the point in recording it as re-billable then, if i'm getting taxed on it if I record it or not.

Presumably you would pay yourself mileage at HMRC rates regardless of whether or not you were rebilling the client for mileage.

So clearly, even though it's taxable income for YourCo, you are better off rebiling the client at 30p/mile. This is taxable income for YourCo, but the mileage it pays you is also tax deductible to in effect, if you just consider the mileage in isolation it's not actually going to be taxed (30p income per mile reduces the cost of each mile YourCo pays you to 15p instead of 45p).

[northernladuk]

If a company pays for my mileage - is this classed as taxable business income?
I wouldnt think it is, but cant find an answer.

My business currently gets 30p per mile
I use my own car so reclaim from my business the 40p/25p limits.

currently I submit a timesheet with my mileage & I get everything paid to me in a lump which goes down as sales on my accounts.
This is how the agency asked me to invoice them - despite my contract clearly saying the mileage rate.
So I am thinking they have mis-advised me.

I know people hate me banging on about speaking to your accountant but this is exactly why you should. Please go speak to him before you make any more costly mistakes.

[AMH]

Why do you not just pick up the phone and speak to the professional you are actually paying for this advice????

Its this kind of advice is exactly the reason why I am in the process of dumping my accountant.
He does not tell or explain anything.


I meant 45p/25p in what you highlighted below. my brain just switches to the old rates for some reason.

I am 1/2 tempted to just my own books & submit them myself. I dont really have anything complicated in my books.

[AMH]

Presumably you would pay yourself mileage at HMRC rates regardless of whether or not you were rebilling the client for mileage.

So clearly, even though it's taxable income for YourCo, you are better off rebiling the client at 30p/mile. This is taxable income for YourCo, but the mileage it pays you is also tax deductible to in effect, if you just consider the mileage in isolation it's not actually going to be taxed (30p income per mile reduces the cost of each mile YourCo pays you to 15p instead of 45p).

ahh,
That makes more sense now.

[Forbes Young]

If a company pays for my mileage - is this classed as taxable business income?
I wouldnt think it is, but cant find an answer.

My business currently gets 30p per mile
I use my own car so reclaim from my business the 40p/25p limits.

currently I submit a timesheet with my mileage & I get everything paid to me in a lump which goes down as sales on my accounts.
This is how the agency asked me to invoice them - despite my contract clearly saying the mileage rate.
So I am thinking they have mis-advised me.

What your company can invoice for should be in the contract you have signed with the company's client (which may be the agency). And everything your company invoices its client for is taxable (subject to corporation tax)

With regards to tax-free business mileage rates that a worker can claim, they are currently 45p per mile up to 10,000 business miles in a tax year (and 25p above this). So there are two separate issues here - what your company can claim can be more or under 45p per mile as it depends what the contract stipulates.

Graeme Bennett ACMA MBA